Potash and Mosaic Ripping Along
Agricultural stocks roaring.
Greetings from the NASDAQ, where I'm getting a little bit loony from traveling from TV studios to market sites and back all day this week. No whining here: Suffice it to say, my head is familiar with the neighborhood of Loony-town. Just sharing, Minyans.
Here's what else I can share as I try to stand clear of the herds diving into stocks you couldn't give away two days ago:
- I hear all the arguments for crude's move being based on inventories, the global growth story and the logic for selling the XLF and the financials in general. Maybe this time is different but today looks like traders are moving from sector to sector in a frenzied way. Cue up some Ratt and try not to get whip-sawed.
- I was more excited about the iPhone "Kill Switch" when I thought it meant Apple (AAPL) was going to be blowing hackers' heads off rather than just shutting down phones.
- Ag names are ripping and roaring today with oft-discussed (and dissed) names like Potash (POT) and Mosaic (MOS) leading the way. It seems logical in light of the declines they've made over the last month. According to technical Hoyle, past support is future resistance. The magnitude of the breakdown means resistance lurks far overhead. Call it MOS $120 and POT $200, by my eyeball.
- Does that mean I'm chasing or changing my view that the cult of Ag has peaked? Not in the least. The other side of the Momentum Mountain isn't a cliff but rather a bumpy and treacherous ski-run. The Ag plays didn't go up 2,000% in one move and they won't go back down that way, either.
- Global growth is back if you own the shippers like Genco (GNK) and DryShips (DRYS), which are both up 10%. If you were playing it through the foreign ETS like the FXI or EEM, on the other hand, you're breaking even, at best. It seems that either the big move or the non-move is "wrong".
- There's something truly hypnotic about synchronized diving. I'm categorizing my watching an hour of a sport that really shouldn't exist with my attraction to Helen Mirren and other things I don't fully understand.
- What am I doing besides wearing more make-up than RuPaul and commuting all day? Stop me if you've heard this one before but I'm waiting around for the financials to get nice n' panicky so I can buy. Like the Great Gretzky said, "try to skate to where the puck will be, not where it is." Ags, coal and shippers are where the puck is today. Goldman Sachs (GS) at $155 or so is where I think the puck will be.
- And yup, I can wait for it to get here. Traders chasing moves are like dogs chasing cars: Neither survives for long.
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